Stressed loans in India`s banking sector crossed $138 billion in June, central bank data reviewed by Reuters shows, an increase of nearly 15 percent in just six months that suggests a state clean-up effort will take longer and cost more than expected.

Reserve Bank Governor Raghuram Rajan on Tuesday said there is a need to shift loan sanctioning process from the present committee-based approach to single banker taking up the responsibility as well as rewarding the person if the project goes on well.

State Bank of India has expressed its inability to divulge details of loans given to Vijay Mallya and his now defunct Kingfisher Airlines in response to an RTI query, holding that the matter is sub-judice and being looked into by investigation agencies.

ED on Friday moved a special PMLA court in Mumbai seeking to declare liquor baron Vijay Mallya a proclaimed offender in connection with its money laundering probe against him in an alleged bank loan fraud case.